On the last trading day of the year, bears dominated the domestic stock market as the NGX All-Share Index (ASI) lost 22 basis points to settle at 102,926.40 basis points.
However, the local stock market maintained a positive tragedy by closing the year 2024 bullish, the fifth consecutive annual gain, having appreciated its value by 37.65 percent during the year.
The All Share Index (ASI) closed 2024 with an impressive annual growth of 37.65 percent and stood at 102,926.40 basis points.
In summary, stock investors earned N21.85 trillion in 2024 as the market capitalization closed the year at N62.76 trillion.
Throughout the year, high-profile listings have energized trading activities on the stock market, providing investors with a broader range of blue-chip stocks. Notable entries include Geregu Power Plc, Transcorp Power Plc, Aradel Holdings and BUA Foods.
These listings have boosted the market capitalization from N12.79 trillion at the end of 2019 to N62.76 trillion in December 2024, representing a meteoric rise of N49.97 trillion.
At the closing ceremony marking the end of 2024 trading activities on Tuesday, NGX CEO Jude Chiemeka, represented by Chief Trading and Product Officer Abimbola Babalola, praised key stakeholders including the stockbrokers represented by Chartered Institute of Stockbrokers (CIS) and Association of Securities Dealing Houses of Nigeria (ASHON).
“The year 2024 saw significant activity in the secondary market, a testament to the efforts of our commercial license holders. Complementary macroeconomic fundamentals were critical and we appreciated the impact of policy formulation by the CBN and the Federal Ministry of Finance. We also commend the Securities and Exchange Commission for its effective oversight, especially during the smooth bank recapitalization process,” he said.
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CEI President and Chairman of the Council, Oluropo Dada, and ASHON President, Sam Onukwue, represented by the Second Vice President, Ify Rita Ejezie, emphasized the critical role of stockbrokers in driving the growth of the capital market . They reiterated their commitment to advocate for policies that improve market development.
Despite impressive growth, challenges remain. According to Proshare's 2025 market outlook, the Nigerian capital market continues to grapple with high transaction costs, information asymmetry, monetary tightening, low trading volumes and wide bid-ask spreads, all of which stifle liquidity. However, the report highlights the potential of tapping the stock market by listing domestic assets, such as NNPC, to unlock liquidity and stimulate domestic and foreign investment.
Temi Popoola, GMD/CEO of Nigerian Exchange Group, reflected on the resilience and growth trajectory of the market: “The Nigerian capital market has proven to be a hub of resilience and innovation, consistently offering valuable opportunities for investors. The strong performance of our blue-chip companies over the past decade has been a key driver of profitability, even amid challenging economic cycles. Inflationary pressures have made stocks an attractive hedge and strategic new listings have significantly boosted market activity.”
Furthermore, he highlighted the transformative impact of political reforms: “Macroeconomic changes, particularly in the oil and gas sectors and currency devaluation, have been transformative. These changes, together with the liberalization of exchange rates, have improved operational efficiency and contributed to the strong performance of listed companies. As we approach 2025, we remain optimistic that continued reforms and a stable macroeconomic environment will sustain growth, boost liquidity, improve investor confidence and deliver long-term value for all market participants.” .
Nigerian Exchange Limited (NGX) has marked a notable turnaround, breaking from the poor performance of the 2015-2019 period to prosper in the 2020s. Following the oil price crash in 2015 and the resulting recession in 2016, the 2020s It marked the beginning of a period of unprecedented growth for the Nigerian stock market.
Since 2020, the NGX All-Share Index (ASI) has generated a stellar return of 283.45 percent, rising from 26,842.07 basis points at the end of 2019 to 102,926.40 basis points in December 2024.
Notable years include 2020, 2023 and 2024, when investors sought higher real returns from stocks amid negative returns in fixed income markets.
The depreciation of the naira, driven by the macroeconomic reforms of the Central Bank of Nigeria (CBN) and the Federal Government, has significantly boosted the performance of the stock market. Foreign capital inflows have increased steadily, rising from a low of 4 percent in mid-2023 to an average of 16 percent in November 2024.
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